Recent insider trading activity at Arthur J. Gallagher & Co. (NYSE: AJG) has raised concerns among shareholders. Richard Cary, the company’s Chief Accounting Officer and Controller, recently sold shares worth approximately $1.6 million. This transaction occurred at an average price of $261 per share, resulting in an 11% decrease in his holdings.
Significant Insider Transactions
Over the past year, there has been a notable trend in insider transactions at Arthur J. Gallagher. The most significant sale was made by Douglas Howell, the Corporate Vice President and Chief Financial Officer. Howell sold shares valued at $4.2 million at around $300 each.
While it is generally concerning when insiders sell shares, this particular transaction occurred at a price above the current market value, which was reported to be $251. Despite this, a larger trend of insider selling has been observed, with insiders divesting 75,590 shares for a total of $24 million while acquiring only 5,170 shares valued at $1.3 million over the same period.
Understanding Insider Ownership
Insider ownership can significantly influence company direction and shareholder alignment. Currently, insiders at Arthur J. Gallagher hold about 1.0% of the company’s shares, which equates to roughly $654 million. This level of insider ownership is generally seen positively, as it indicates that management may be more committed to shareholder interests.
Implications of Recent Insider Activity
Data reflecting the behavior of insiders over the past three months indicates that more shares have been sold than bought. While Arthur J. Gallagher remains a profitable and growing company, the recent history of share sales may dampen optimism among potential investors.
In addition to the trading data, it’s crucial for investors to remain aware of any risks facing the company. Various analysts have noted four warning signs regarding Arthur J. Gallagher, with one of these being concerning.
Cautionary Measures for Investors
For those considering an investment in Arthur J. Gallagher, understanding the actions of insiders is invaluable. While buying or selling decisions made by company executives can provide insights, they are not the sole factor that needs consideration. Investors should also weigh the company’s overall performance and potential risks.
- Insider Sales: Richard Cary sold $1.6 million; Douglas Howell sold $4.2 million.
- Insider Purchases: 5,170 shares acquired for $1.3 million.
- Total Divested Shares: 75,590 shares sold for $24 million.
- Insider Ownership: 1.0% of shares, valued at $654 million.
Overall, prospective investors are encouraged to further investigate Arthur J. Gallagher and consider consulting with financial advisors to evaluate risks and opportunities effectively.
